You’re ready to open a business checking account. You’ve compared your options to find a bank that specializes in areas that complement your long-term business plans, evaluated fees and other details, and made the decision.
So what comes next? Opening your account, of course!
(If you aren’t sure which bank is the right fit, you might find this recent blog post helpful.)
Documentation Needed to Open a Business Checking Account
For security and compliance reasons, there are certain types of documentation you’ll need to open a new account.
Due to the Patriot and Dodd-Frank Acts, federal regulations require banks to obtain legal proof of a customer’s identity and business legitimacy.
If you’re an independent contractor or sole proprietor with no employees. the requirements are usually fairly simple; a social security number and your driver’s license, state identification card or passport. If you operate under a DBA. as a limited partnership, or have a professional business license of any kind, you’ll want that legal paperwork, too. It should reflect both the business and the owner’s name(s), and be certified by a state official.
If the business is a Corporation or LLC (Limited Liability Corporation), the process becomes a little more complex. You’ll need to prove there actually is a business, and that you have the authority to represent that business and open the account. Your Federal Employee Identification Number (EIN) is required, along with organizing documentation such as your Articles of Incorporation, Corporate Charter, DBA or Partnership Certificates, and other filing paperwork. Unless it’s already in other documentation, proof of business address is also useful, so consider having a recent bill or invoice with your other paperwork.
Certain types of businesses are excluded from opening an account online, including telemarketing, gambling, government entities and those dealing in precious metals.
If you are an employee, not an owner, it’s necessary to obtain formal paperwork showing you are authorized to open the account on behalf of the business. If this documentation isn’t readily available, most banks can provide the appropriate form and assist with the process.
It’s also helpful to have documentation authorizing any additional employees that should be on the account, along with photocopies of their driver’s licenses.
Today, most banks allow a business account to be opened online, which can simplify the process quite a bit. We recommend not only collecting the appropriate paperwork before you begin, but taking time to digitize them for fast uploading before you start the application. You’ll be surprised just how fast you’ll blast through the process.
Are you looking for more detailed information on how to choose or open a business checking account? We’re happy to answer any questions you have, just contact any branch or email us at firstname.lastname@example.org.